Enterasys Networks

(ETS)

said Friday that it narrowed its fourth-quarter loss, but warned that results in the next quarter could be hurt by the war in Iraq.

The computer-networking company posted a quarterly loss of $30.6 million, or 15 cents a share, compared with a loss of $31.5 million, or 16 cents a share, in the year-earlier quarter. Analysts were expecting the company to lose 7 cents a share.

The company's shares were down 3.5%, or 7 cents, at $1.93 in early trading.

Revenue was $121.2 million, down from last year's $122.7 million. The company had expected sales of $120 million.

Massachusetts-based Enterasys said it expects first-quarter revenue to decline 6% to 10% from the fourth quarter, due in part to the seasonal nature of its business and a challenging economy. This estimate would put revenue in a range of $109.1 million to $114 million.

Separately, the company said Ronald Maheu, a 30-year veteran of PriceWaterhouseCoopers, joined its board of directors.